Gold at Crucial Trading Zone – Time to Decide Long Term Trend!

As I mentioned in my earlier update, it was a good idea to close our long term sell before the Jackson Hole symposium as the unpredictable


As I mentioned in my earlier update, it was a good idea to close our long term sell before the Jackson Hole symposium as the unpredictable volatility caused so much trouble for both bulls and bears. Now, the gold is holding at a very crucial stage. It's time to plan for the long term.

 

Gold – Key Technical Drivers 

The gold is still trading in a bullish channel. We can see in the below chart, gold prices are now trading above $1294, after testing the lower edge of the bullish channel.

50- periods EMA is providing a support at $1286 (4H Timeframe). Keep in mind that the gold has broken above the double top resistance level of $1297. To make sure that it's really broken, we need to wait for today's closing.

Gold - Bullish Channel - 4 Hours Chart Gold – Bullish Channel – 4-Hour Chart 

RSI Stochastic is holding in the selling zone (below 50), signaling that the gold has the potential for further buying. But, on the 4-hour time frame, it's massively overbought.  

Now if gold stays below $1301, we are likely to sell a strong sell until 1280 – 1270. Whereas, above 12301-04 the yellow metal will enter the new bullish trading region of $1300 – $1325.

 

Gold Trading Plan

I'm looking to enter a sell position at $1304 with a stop loss above $1307 and take profit at $1291 and $1285. The trade setup will be more clear with time as we have US labor market figures by the end of the week. Till then, it's recommended to use small trading volume with risk management.

 
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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